Every entrepreneur understands that in order to facilitate the innovative project conjured by him he needs funding. How? From whom? and how much would it cost? These are the main questions that bother many entrepreneurs because their significance is acute in realizing the project and turning it from a “brilliant idea” into a successful start-up. Not many know that it is possible to raise capital for the enterprise from the State and even to enjoy funding through one of the international development plans, including ones in cooperation with the Chinese government. So, how does it work?
Due to the realization that in order to fulfill the tremendous potential of the Israeli industry (which is known worldwide as the “start-up nation”) and in order to preserve and strengthen Israel’s position in the global innovation front, the State of Israel made a strategic decision to change the structure of the Office of the Chief Scientist (Which was also renamed to the Authority of Innovation), and turn it into a dedicated authority that provides a safety net and an adaptive environment for the Israeli entrepreneur at any stage of development of the project, from providing strategic planning support to the development of the enterprise, through finding investors and raising capital for research and development, and making it sustainable during the process. The entrepreneur receives an additional safety net in the form of scholarships, tax benefits and even a financial investment by the State. However, it is important to remember that entering the support route requires certain bureaucracies, such as submitting forms and documents to review compliance with the terms of admission and understanding the legal implications, both short and long term, of the cooperation with a foreign investor. The process requires self-capital and one must remember that most of the funds are given as refunds and not in advance and thus, this route requires proper budgetary planning. For this purpose, it is advisable to employ, both during the funding process and until the project is completed, an attorney who specializes in the field of start-up companies and is knowledgeable in the work with the Innovation Authority and with a business consultant who knows this field.
Our office assists, in collaboration with experts in the field, on issues of taxes and government incentives, including with regard to the Capital Investment Encouragement Law, Chief Scientist funding, benefits for new immigrants (Hatavot Le-Olim) and returning residents (Hatavot Toshav-Chozer) and other tax benefits or state incentives or financing.